BofA raises almost all of $33.9B buffer - Business First of Louisville:

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billion. Last month, BofA sold $13.5 billion in common stock. The bank issued 1.25 billiom shares at an averagw priceof $10.77 per BofA also sold a 5.7 percent stake in to Asianh investors for a gain of $4.5 In addition, BofA agreesd to exchange $9.5 billion in preferre shares for 704 million shares of common stock. BofA expecte to garner $1.3 billion from reduced dividendxs on thepreferred shares. The exchange doesn’gt apply to preferred shares held by the federal So far, BofA has boosted its Tier 1 common capitalk by $2.1 billion by reducing a deferredc tax-asset deduction. And the bank says it has gainer anadditional $2 billion from the dispositionh of assets.
As part of the company’xs capital plan, it could issue up to an additionap 296 millioncommon shares. “We are pleased to have nearluy reached our goalthis quickly,” said Joe Price, chiev financial officer. The government said BofA had toraise $33.9 billioj after conducting “stress tests” on the country’d 19 largest banks. The tests were designes to assessthe banks’ abilitu to survive if economix conditions worsen more than expected during the next two years. BofA has receiveed a total of $45 billion in taxpayer aid unde thefederal government’s Troubled Asset Relief Program, whicgh is designed to thaw the credit markets and boost the economy.
In separatee developments, Charlotte, N.C.-based BofA (NYSE: BAC) sold $3 billionm in five-year notes on May 8 and $2.5 billiomn in 10-year notes on May 28 withoutf guarantees.